Thanks for your comment. I had included the link to Pittsburgh Live table that shows the revenues related to gas drilling which the Pennsylvania Department of Revenue accounts for which totaled $373 million for 2011 (excluding personal income tax collections).

Could you kindly point me to any revenue analysis done by the governors staff when you considered the options for the state? I would imagine that there is some comparative analysis with the surrounding states. I think that would clarify the idea of “foregoing royalties”.

Many thanks in advance. Cate Long

]]>By: pathendersonhttp://blogs.reuters.com/muniland/2012/01/24/pennsylvania-to-forgo-24-billion-in-fracking-royalties/comment-page-1/#comment-669
Thu, 26 Jan 2012 03:27:23 +0000http://blogs.reuters.com/muniland/?p=6978#comment-669The premise of the article – that PA will “forego” billions in royalties because it does not adopt a severance tax – is simply misplaced – and misleading.

First, any fair consideration as to the value that Pennsylvania taxpayers will receive from natural gas development would include ALL taxes paid by operators, and landowners, engaged in the activity. Nowhere in the analysis is consideration given to the hundreds of millions of dollars paid annually already under the state’s existing corporate net income, personal income, capital stock and franchise, liquid fuels and other taxes. While many states which Pennsylvania is actively competing for limited capital investment may impose some level of severance tax, they do not impose the same suite of taxes.

Second, and more importantly, Governor Corbett was elected under the premise that we do not tax ourselves to prosperity. Creating an economic atmosphere which grows jobs and attracts investment will do more to increase revenue than adding new layers of taxes on job creators and Pennsylvania landowners.

Natural gas development is an oasis in a economic desert we all hope to emerge from as soon as possible. This activity is putting tens of thousands of Pennsylvanians back to work. And guess what? They all pay taxes. Its lowering energy prices for Pennsylvania businesses – letting them hire more, produce more and yes, pay more in taxes as they do better.